10-QPeriod: Q2 FY2025

Rocket Companies, Inc. Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 8, 2025For Securities:RKT

Summary

Rocket Companies, Inc. (RKT) reported its financial results for the second quarter and first half of 2025. The company saw an increase in residential mortgage loan originations for both periods, driven by higher origination volumes and a stable gain on sale margin in the Direct to Consumer segment. However, overall Net Income and Adjusted EBITDA decreased significantly compared to the prior year, primarily due to increased operating expenses, including marketing and acquisition-related costs, and adverse changes in the fair value of Mortgage Servicing Rights (MSRs). Financially, the company significantly increased its cash and cash equivalents, largely due to a $4 billion senior notes offering. This was accompanied by a decrease in total equity, primarily due to deferred tax impacts from the Up-C Collapse. The company also completed the acquisition of Redfin in July 2025 and remains on track to close the Mr. Cooper acquisition in Q4 2025, signaling a strategic shift towards a more integrated mortgage and real estate platform. While the company reported a net loss for the first six months of 2025, management believes its current liquidity and resources are adequate to fund ongoing operations.

Financial Highlights

32 data points
Beta

Net Income

-$1.78M

EPS (Diluted)

$-0.01

Total Assets

$30.36B

Cash & Equivalents

$5.09B

Free Cash Flow

-$1.87B

Financial Statements
Beta
Operating Expenses$1.34B
Net Income-$1.78M
EPS (Basic)$-0.01
EPS (Diluted)$-0.01
Shares Outstanding (Basic)171.44M
Shares Outstanding (Diluted)171.44M

Key Highlights

  • 1Total revenue for Q2 2025 was $1.36 billion, a slight increase from $1.30 billion in Q2 2024, driven by higher gain on sale of loans and servicing fee income, though partially offset by unfavorable changes in MSR fair value.
  • 2Net income attributable to Rocket Companies for Q2 2025 was a loss of $1.8 million, a significant decrease from a net income of $1.3 million in Q2 2024. For the first six months of 2025, the company reported a net loss of $12.2 million, compared to a net income of $17.5 million in the prior year.
  • 3Residential mortgage loan originations increased year-over-year, with Q2 2025 volume at $29.1 billion (up 18%) and H1 2025 volume at $50.6 billion (up 13%), indicating increased market activity.
  • 4The company completed a significant organizational restructuring with the "Up-C Collapse" on June 30, 2025, simplifying its capital structure by exchanging Class D common stock and Holdings Units for Class L common stock.
  • 5Rocket Companies completed the all-stock acquisition of Redfin Corporation on July 1, 2025, and is actively pursuing the acquisition of Mr. Cooper Group Inc., expected to close in Q4 2025, indicating strategic expansion and integration efforts.
  • 6Total expenses increased by 21% in Q2 2025 to $1.34 billion, driven by higher salaries, commissions, marketing, and administrative expenses, including acquisition-related costs.
  • 7Cash and cash equivalents significantly increased to $5.1 billion as of June 30, 2025, up from $1.3 billion at the end of 2024, largely due to proceeds from a $4 billion senior notes offering.

Frequently Asked Questions

In Q2 2025, Rocket Companies reported total revenue of $1.36 billion, a slight increase from the prior year, driven by higher loan origination and servicing fees. However, the company experienced a net loss of $1.8 million for the quarter, a decrease from a small net income in Q2 2024. For the first six months of 2025, a net loss of $12.2 million was reported, a decline from a net income in the comparable period of 2024. This performance was impacted by increased operating expenses, including marketing and acquisition-related costs, and unfavorable changes in the fair value of Mortgage Servicing Rights (MSRs).

Rocket Companies has undergone significant strategic changes. The company completed its "Up-C Collapse" on June 30, 2025, simplifying its corporate structure. Furthermore, Rocket Companies completed the acquisition of Redfin Corporation on July 1, 2025, and remains on track to acquire Mr. Cooper Group Inc. in Q4 2025. These moves signal a clear strategy to integrate mortgage, title, and real estate services to offer a more comprehensive client experience.

The company's balance sheet shows a substantial increase in cash and cash equivalents to $5.1 billion as of June 30, 2025, up from $1.3 billion at the end of 2024, primarily due to proceeds from a $4 billion senior notes offering. Total equity decreased by $1.4 billion to $7.4 billion, largely due to deferred tax impacts related to the Up-C Collapse. Despite the net losses, management believes its liquidity position is strong and adequate for ongoing operations.

Mortgage originations showed positive year-over-year growth in Q2 2025, with $29.1 billion originated, up 18% from $24.7 billion in 2024. For the first six months of 2025, originations reached $50.6 billion, an increase of 13% from $44.9 billion in 2024. This growth, particularly in the Direct to Consumer segment, suggests continued demand despite a challenging interest rate environment and limited housing inventory.